The Reserve Bank of India has imposed a financial penalty of ₹1,31,80,000 on Tamilnad Mercantile Bank for non-compliance with sure instructions underneath the provisions of the Banking Regulation Act.
As per the survey, TMB did not benchmark the rate of interest on sure floating charge loans to MSMEs to an exterior benchmark lending charge; adopted a number of benchmarks throughout the identical mortgage class; failed to cost sure floating charge loans with regards to precise benchmark charge relevant to these loans and wrongly reported exterior score of sure debtors to CRILC, the financial institution mentioned in a regulatory submitting.
The Statutory Inspection for Supervisory Evaluation (ISE) of the financial institution was carried out by RBI with regards to its monetary place as on March 2022.
